How To Serve A Statutory Demand

Serving a statutory demand correctly is a critical step before starting insolvency proceedings. If it’s done improperly, the debtor can challenge it and your case may be delayed or dismissed.

This guide explains how to serve a statutory demand properly, what the law requires, and what to do if the debtor avoids service.

What Is a Statutory Demand

A statutory demand is a formal demand for payment of a debt. It is often used as a precursor to:

Bankruptcy proceedings (for individuals)
Winding-up petitions (for companies)

It gives the debtor 21 days to pay (or reach an agreement), failing which insolvency action can be taken.

Who Can Serve a Statutory Demand

There is no strict legal requirement for a statutory demand to be served by a professional. It can be served by:

The creditor
A solicitor
A process server

However, using a professional process server is strongly recommended, especially if you may rely on the demand in court.

Methods of Serving a Statutory Demand

Personal Service. This is the most reliable method.

The demand is physically handed to the debtor
Service is usually carried out at their home or place of work
A certificate or statement of service is completed

What Happens After Service

Once served:

The debtor has 21 days to:
- Pay the debt
- Reach a settlement
- Apply to set aside the demand (individuals only)

If they fail to act:

You may proceed with bankruptcy or winding-up action

Making an Enquiry?

Have a process serving requirement but need to discuss it first?

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